Passive Income is not easy and it takes a lot of hard work

10/13/2016


So many of us have tried to create fruit yielding passive-income streams only to be surprised at the amount of work involved, the money we have to spend and the time involved to succeed.

What is passive income?

Passive income includes regular earnings from a source other than an employer or contractor.
Passive income is not about getting something for nothing. It might have a 'get rich quick' appeal ... but in the end, it will still involves work.

I’ve spent many hours thinking and researching all kinds of ideas for making passive income... and this is what I've learned... Nothing that is worthwhile comes easy.

Passive Income is not easy and it takes a lot of hard work.

Let's take for example property. Buying property to rent out is an an effective and time-honoured way of earning passive income. But having said that, this often requires a lot more work than most people expect. That is why you have to spend time learning how to make it profitable. If you don't, you will lose a lot of money. To earn passive income from rental property, you must determine 3 things: what is the return on investment you want to have, the property's costs and expenses, and the financial risks of owning the property. Because property is such a large investment you will often have a mortgage you have to pay for. Sudden changes like rental vacancies or rising interest rates can put a huge strain on your cash flow. Ultimately whether or not you invest in property is completely up to you. If you have a passion for it and are willing to work hard and learn then I say “why not give it a go?”.

Another hindrance is believing in overnight success. 

I learned that investing is a journey and there are no magic formulas irrespective of how many stories you hear of investors striking gold overnight. I don't know how many people I know who have fallen for rich quick schemes or investments that claim a 100% growth. At the end , they end up with nothing and blame the markets for their own reckless decision. I also know of "secret groups" on Facebook where people believe they have found "money making scheme" that really work. I just unfollow the group and keep it moving. I've learned that when you try to help, you get attacked. And believe me, there are loads of people who are on these schemes, who don't want to hear the truth. That is why you must avoid anyone or any scheme that promises to make you money at a drop of a hat. Short cuts create short-lived success and long-term failure!

So from these two examples you can see that passive income was never meant to be “100% hands-off.” There will always be some degree of work involved. And yes, it is possible to earn a passive income but to maintain it and fuel growth, there’s simply no substitute for hard work and consistency.

I know that times are tough and money is tight but don't look for shortcuts. The only way to get there is by taking one step at a time towards to your goals. Persistence is key.

Whatever you choose to do with your money, make sure that you choose wisely. One mistake and it's all gone.



  • Share:

You Might Also Like

0 comments